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December 2017

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Brazilian cotton exports warmed early this month while trades in the export market were slow; a consequence of rise in export parity and decreases in domestic demand, however, Brazilian prices were firm.

“Between December 7 and 11, the CEPEA/ESALQ Index was at an average 3.9 per cent lower than exports parity,” a CEPEA report said.

In the first half of the month, the CEPEA/ESALQ Index for payment in 8 days for cotton type 41-4, delivered in São Paulo, declined 0.43% per cent averaging 2.2414 BRL or US $0.577 per pound.

Data from the National Company for Food Supply (CONAB) released on December 11 shows that Brazilian production of the 2015/16 crop dipped 3.8 per cent as against the previous season, at 1,503 million tons.

“Area may be 1.6 per cent lower than in the 2014/15 crop, at 960,600 hectare,” CEPEA quoted CONAB as saying.

Still according to CONAB, the Mato Grosso region may harvest 925,700 tons, up 0.4 per cent with acreage higher by 4.3 per cent at 586,900 hectares, but productivity lower by 3.7 per cent.

According to CEPEA, the CONAB data also informed that the anticipated pace of trades in Mato Grosso can lead producers to increase cotton area instead of soybean.

“Bahia, the second largest producing region may see a drop in production of 10.4 per cent at 389,300 tons and acreage by 9.6 per cent,” CEPEA stated. (AR)